GDP grew at record 33.1% annual rate in third quarter in partial bounce back from pandemic losses

The U.S. economy grew at a record-breaking 33.1% annual rate in the third quarter, the Commerce Department reported Thursday, beating forecasters' expectations.

The massive growth number, although not enough to return the economy to pre-pandemic health, will provide President Trump to claim in the last days of the election that the country is clawing its way out of the COVID-19 recession faster than critics thought possible.

"This record economic growth is absolute validation of President Trump’s policies which create jobs and opportunities for Americans in every corner of the country," said Tim Murtaugh, the Trump campaign's communications director.

Still, the economy is 3.5% smaller than it was at the end of 2019.

"We have a long way to grow out of the deep hole dug by the second quarter crash," said Robert Frick, corporate economist at Navy Federal Credit Union.

Returning the economy to full health would have required third-quarter growth of 63.7% at an annual rate.

The third-quarter growth, which was 7.4% on a month-to-month basis, represented businesses returning to work after being shut down in the spring during the worst of the pandemic.

In other words, it was a partial bounce back from the record-breaking economic contraction of 31.4%, annualized, in the second quarter.

Still, less catch-up growth is expected for the next quarter.